Investing.com - Starbucks reported on Tuesday first quarter earnings that beat analysts' forecasts and revenue that was in line with expectations.
Starbucks (NASDAQ:SBUX) announced earnings per share of $0.79 on revenue of $7.10 billion. Analysts polled by Investing.com anticipated EPS of $0.76 on revenue of $7.1 billion.
That was in comparison with EPS of $0.75 on revenue of $6.63 billion in the same quarter a year earlier. Starbucks had reported EPS of $0.70 on revenue of $6.75 billion in the prior quarter.
Analysts are expecting EPS of $0.66 and revenue of $6.76 billion in the next quarter.
Shares were about flat in postmarket trading.
Starbucks (NASDAQ:SBUX) shares are up 0.77% so far this year and are trading at $88.50, still down 11.15% from their 52-week high of $99.72 set on July 26, 2019.
Stock valuation looks high at the moment, Investing.com analyst Haris Anwar said.
But the company “remains well on course as the chain wins back coffee drinkers not only in its home markets, but also in China,” Anwar said.
“The company’s future growth is very much dependent on its international success as well as its restructuring at home, which is crucial to meeting customers’ changing needs,” he added.
“Data-driven new CEO Kevin Johnson clearly knows what he's doing,” Anwar said. “The tactics he's employing certainly appear to be helping to attract customers and to increase their spending in the stores.”
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